Integrated annual report | Samruk-Energy JSC

Category “Environmental”

According to the Environmental Performance Index (EPI) rating, Kazakhstan ranked 69th among 180 countries in 20161. This is a good demonstration of the scale of challenges for Kazakhstan on the way to approaching the best world environmental standards, which must be implemented in the state environmental policy.

The company remains faithful to the principles of sustainable development, realizes the importance of the environmental situation in the regions where it operates and responsibility to the present and future generations for the negative impact on the environment from the operations of its subsidiaries.

To manage the environmental aspect, the Company has created an environmental management system (EMS), which is an integral part of the corporate governance system and an essential part of the non-financial risk management system. EMS in the Company is constantly assessed for compliance with the best world practices with the involvement of independent international consultants and is gradually improved.

The ISO 14001 “Environmental Management” standard is introduced at all SA of the Company that carry out production activities.

Taking into account the existing experience and specifics of technologies used, available fuels, peculiarities of our climate, as well as a number of other stimulating and often restraining factors, we have developed an environmental policy as an integrated long-term program that is part of the Company’s sustainable development policy.

Priority directions of development and goals of the Company’s operations in the environmental area are shown in the long-term Development Strategy and the Environmental Policy of the Company.

Financial aspects and other risks and opportunities for the company’s activities related to climate change

Climate change resulted in an increase in the concentration of greenhouse gases in the atmosphere, is recognized as one of the main climatic threats. The development of an effective energy transition strategy, i.e. the use of more efficient, environmentally friendly technologies, is a systemic task for the Republic of Kazakhstan.

In addition, the Kyoto Protocol was replaced by the Paris Climate Agreement, adopted in the framework of the Conference of Parties to UN FCCC – COP–21 in Paris in December 2015 and entered into force on November 4, 2016. The Paris agreement was ratified by 170 countries, including Kazakhstan. The purpose of the agreement is to keep the growth of the global average temperature “much lower” 2°C and “make an effort” to limit the temperature rise of 1.5°C.

Kazakhstan announced its intended contribution to limiting or reducing greenhouse gas emissions in the form of an unconditional target of 15 % and a conditional target of 25 % by 2030 (i.e. from 2020 to 2030) from the 1990 baseline.

Any international environmental agreements and conventions are always new and sometimes very ambitious goals for business, and the Paris climate agreement in particular is quite a serious challenge for the high-carbon economy of Kazakhstan. But on the other hand, Kazakhstan has the opportunity to attract investments in the renewable energy sector: an indicative assessment of experts shows that due to “Paris” financing, investments in RES in emerging countries may increase by 30–50 %.

A system for quoting greenhouse gas (GHG) emissions was introduced in Kazakhstan in 2013 in order to regulate greenhouse gas (GHG) emissions. In 2016, this system was suspended until 2018 to correct and eliminate the discrepancies and collisions identified by the first two periods of quoting.

The article 94–2 of the Environmental Code of the Republic of Kazakhstan – “Quotas on Greenhouse Gas Emissions” has come into effect again from January 1, 2018. Three-year period – 2018–2020 have been determined as the next period of setting quotas. The National Plan for Distribution of Quotas includes 225 installations from such sectors as power industry, metallurgy, oil and gas, mining, chemical and manufacturing industries.

Plant operators are offered a choice of method for allocating quotas: based on baseline application or based on specific GHG emission factors (SEF method). Both methods carry risks for operators of installations in respect of which quotas were established, since they take into account the historical volume of production (2013–2015) and, accordingly, do not take into account the plans of companies to increase the volume of products for the period of validity of the National Plan for allocation of GHG emission quotas.

Among the Company’s subsidiaries, facilities that were set quotas include ESDPP–1, ESDPP–2 plant, APP, Aktobe CHP and Bogatyr Komir.

To date, the Company’s facilities in respect of which quotas were established, are implementing a number of measures to improve the energy efficiency of plants, and modern technologies aimed at reducing GHG emissions are also studied, which will allow us to reduce the risks of exceeding the quota limits at the end of the third quota establishing period, i.е. at the end of 2020.

At the same time, we plan to take advantage of the possibility of implementing so-called internal projects to reduce GHG emissions as part of RE projects (according to Article 94–10 of the RK EC).

Used materials

Generation of the Company is a “triptych” of fuel generation, hydropower and renewable energy.

A Conventional, which is also a fuel generation of the Company’s energy, is conducted by burning such fuels as coal, fuel oil and gas.

By the end of 2017, conventional generation accounted for 88 % of the total power generation of the group of companies, which is 4 % more than in 2016.

When it comes to “clean” sources of energy, in 2017 the share of output from HPPs decreased by 4 %, and the share of RES remained at about the same level.

Generation by types 2017

Consumed materials (in tons)

 

2008

2009

2010

2011

2012

Coal

13,014

2,779,658

6,009,109

6,677,558

6,999,479.5

Fuel oil

0

29,114

56,783

58,601

81,776

Gas

0

559,160

609,361

609,832

599,720

DO

184

13,634

19,987

21,499

23,036

Petroleum

313

3,888

4,585

4,712

6,146

 

2013

2014

2015

2016

2017

Coal

12,909,236

14,834,866

11,852,922

11,834,484

15,350,595

Fuel oil

12,721

51,000

21,606

19,894

21,092

Gas

500,531

657,509

623,548

794,806

831,593

DO

24,003

23,172

21,105

18,557

20,731

Petroleum

6,227

6,118

5,774

5,319

4,732

Water consumption

Water is consumed strictly in accordance with the current legislation, i.e. the Company’s subsidiaries and affiliates collect water in accordance with available permits for water use and water consumption. Water is used for such purposes as recharge of reservoirs, cooling of steam, irrigation of ash beaches, maintaining water levels in ash dumps, and HPPs use the water as a source of energy.

Total amount of water withdrawn broken down by sources, in thous. m3

 

2008

2009

2010

2011

2012

Total amount of water withdrawn

696

74, 588

131,732

12,921,796

15, 877,253

From surface water bodies

12

7,071

72,541

12,862,314

15,817,555

From underground sources

19

4,790

4,214

4,431

5,508

Waste water from other organizations

1.55

126

389

415

547

From municipal and other systems

665

62,727

54,976

55,048

54,191

Volume of reused and recycled water

132

63,071

833,433

766,534

781,088

 

2013

2014

2015

2016

2017

Total amount of water withdrawn

13,007,836

15,930,525

13,578,720

9,671,594

10,313,409

From surface water bodies

12,953,121

15,879,552

13,527,569

9,798,145

10,261,611

From underground sources

5,530

5,690

7,237

6,817

6,858

Waste water from other organizations

497

445

444

406

399

From municipal and other systems

49,184

45,283

43,914

44,765

44,940

Volume of reused and recycled water

2,461,874

2,591,087

2,126,698

2,921,806

2,663,002

Emissions into the atmosphere

The main pollutants common to fuel power plants are nitrogen oxides, sulfur oxides, carbon monoxide, fly ash.

In 2017 the amount of electricity generation increased by 27 % compared to 2016, accordingly, the volume of gross emissions increased. Gross emissions amounted to 264.3 thousand tons across the company’s group, which is 21 % more than in 2016.

The implementation of a comprehensive environmental protection program and an increase in output at RE facilities and hydroelectric power plants have resulted in a reduction in the specific emission of pollutants per unit of the Company’s products.

There is a positive trend towards reducing ash emissions after the commissioning of advanced electrostatic precipitators at all power units of ESDPP–1 and ESDPP–2, as well as wet ash trap emulsifiers at APP plants. The gross ash emissions from 2009 to 2017 decreased by 3 times.

Gross output

Gross emissions

SA contribution to gross emissions of the Company “Generation” sector 2017

Specific emissions of pollutants, g/kWh

Gross ash emissions trend “Samruk-Energy” JSC, 2009–2017

Emissions into the atmosphere of NOx  , SO2 and other significant pollutants

 

 

2008

2009

2010

2011

2012

NOx

thous. tons

insignificant

14.0

25.4

28.8

29.5

SO2

thous. tons

45.1

67.5

77.8

72.1

thous. tons

0.8

5.3

2.0

1.4

Particulate matters

thous. tons

18.1

95.8

23.1

21.0

POP

tons

VOC

tons

62.4

53.96

52.8

53.64

78.1

СО2

thous. tons

3, 821.16

3,586.75

16,076.4

20,520.6

18,638.5

 

2013

2014

2015

2016

2017

NOx

69.5

65.2

52.9

54.7

66.4

SO2

162.6

143.4

125.8

132.9

160.4

2.2

2.2

2.6

2.8

3.14

Particulate matters

51.7

35.9

30.1

28.0

34.4

POP

VOC

99.13

139.17

133.1

115.4

245.6

СО2

32,156.6

30,298.6

25,039.7

24,150.66

30,126.3

Wastewater discharges

Wastewater of first category industrial facilities of the Company are not discharged into natural objects. Artificial facilities are used as wastewater storage facility that meet all the requirements of construction standards to prevent negative impacts on groundwater.

Considering the fact that circulating water systems are used in the Company’s SA, the volume of wastewater is insignificant (less than 1 % of the volume of water withdrawn). Wastewater before the discharge into the storage tanks undergoes the necessary cleaning up to the required parameters. Part of the wastewater is supplied directly to municipal sewerage network, after which they are cleaned at municipal sewage treatment plants.

 

2008

2009

2010

2011

2012

Wastewater volume

1,521.786

4,274.101

29,295.297

16,600.016

15,718.573

 

 

2013

2014

2015

2016

2017

Wastewater volume

59,440.511

48,675.118

46,345.592

64,842.095

60,144.078

The monetary value of significant fines and the total number of non-financial sanctions

Ecological code of the Republic of Kazakhstan on the part of the state provides for inspections of environmental inspections, according to the results of which fines for violation of the requirements of legislation may be imposed. In 2017, the amount of significant fines amounted to about 12.5 million tenge.

 

Measurement unit

2008

2009

2010

2011

2012

Significant fines

thous. tenge

797.492

2,610.343

748.9

29,818.07

8,031.715

Non-financial sanctions

number of incidents

Cases using dispute resolution mechanisms

thous. tenge

 

Measurement unit

2013

2014

2015

2016

2017

Significant fines

thous. tenge

11,651.23

6,920.808

115,393.4

10,587.4

12,596.25

Non-financial sanctions

number of incidents

Cases using dispute resolution mechanisms

thous. tenge

Total costs and investments in the environmental protection by type

In line with current legislation of the Republic of Kazakhstan, each 1st category subsidiary of the Company (ESDPP–1, ESDPP–2, APP, Aktobe CHP and Bogatyr Komir) has an action plan approved by an authorized body on environmental protection, the execution of which is an obligatory condition for special-purpose nature use.

 

 

2008

2009

2010

2011

2012

Total

thous. tenge

17, 821.5

1,238,050.4

6,299,217.2

4,978,326.9

5,599,315.6

Costs associated with waste management and emission treatment as well as elimination of environmental damage

thous. tenge

16,184.5

1,218,044.6

6,279,705.4

4,925,625.7

5,549,652.7

Expenses for preventing the impact on the environment and environmental management system

thous. tenge

1,637

20,005.7

19,511.9

52,701.2

49,662.8

 

 

2013

2014

2015

2016

2017

Total

thous. tenge

7,106,406

9,156,251.6

3,193,912.4

1,197,259.2

2,213,407.5

Costs associated with waste management and emission treatment as well as elimination of environmental damage

thous. tenge

3,769,515

9,028,699.6

2,877,691.9

825,732.8

1,825,147

Expenses for preventing the impact on the environment and environmental management system

thous. tenge

3,336,891

127,552

316,220.5

371,526.4

388,260

The Company’s expenses and investments in environmental protection amounted to 2.2 billion tenge in 2017.

In order to minimize the harmful impact on the environment from 2008–2017, the following activities were carried out:

“ESDPP–1” LLP:

  • Installation of advanced electrostatic precipitators produced by “Lodge Cottrell” (Korea) with an ash removal factor of 99.6 and of “Alstom” (France). The efficiency of flue gas cleaning has increased to 99.6 %, the dust content after the installation of new electrostatic precipitators is 300–400 mg / Nm3 instead of 1 620 mg / Nm3. Specific ash emissions from 2013 to 2016 decreased from 
2.47 g/ kWh to 1.29 g/kWh.
  • installation of low-emission turbulent burners;
  • reconstruction of the water treatment plant;
  • repair of HAR system;
  • landscaping and planting greenery

“ESDPP–2 Plant” JSC:

  • installation of “Alstom” (France) electrostatic precipitators at two existing power units with an ash removal factor of 99.4–99.6 % (before installation – 88 %);
  • construction of a dry ash plant;
  • Repair of aspiration units of plant’s fuel supply channel;
  • Repair of burners;
  • repair of HAR system;
  • reconstruction of sewage treatment facilities;
  • landscaping and planting greenery.

“APP” LLP:

  • ubiquitous implementation of measures to repair and replace sluice-discharge pipelines;
  • Installation of new generation emulsifiers with boilers not less than 99.4 % on boiler units;
  • Installation of low-emission burners in order to comply with the level of nitrogen oxide emissions in accordance with the requirements of the Technical Regulations. which allowed reducing emissions (per boiler) of ash by 
0.11 g/s, NOx – by 0.6 g/s, SO2 – by 0.8 g / sec.
  • At the ash dumps of “ESDPP–1” LLP, “ESDPP–2 Plant” JSC, “APP” LLP:
  • Reclamation of waste parts of ash dumps, dust suppression of ash beaches.

“Bogatyr Komir” LLP:

  • reduction of the volumes of storage of overburden rocks on external rock dumps, which allows to slow down oxidation-reduction processes and reduce the release of pollutants into the atmosphere;
  • blasting operations in watered wells, which reduces the release of pollutants into the atmosphere;
  • dust suppression during excavation of coal in the faces, use of mine water for dust suppression on roads on the coal mine;
  • landscaping and planting of greenery on the territory of the enterprise’s business units.